Strategic Management

STRATEGIC THINKING AND

STRATEGIC CHANGE

2006

PART A

Strategic Thinking and Strategic Change

Introduction

The talk of strategy contains various concepts that either amazed or dictates students of business . These concepts are very widely recognized and mistaken as concepts that would last forever with regards to its viability . In reality , concepts regarding strategies are very much similar to the nature of strategy itself , they are developed in dynamic circumstances that requires modification if circumstances change

There are two kinds of strategic concepts , good strategic concepts , in the

sense that the concepts took account of all new development in the world of business and bad strategic concepts , in the sense that the concepts are no longer viable in addressing development of the business environment . Within this , we will discuss three types of strategic concepts and evaluate their viability in providing business people with good insights in building a profitable business . The purpose of this is to determine the role of strategic thinking and formulation in encouraging strategic change

The three strategic concepts have considerable relationship with the effort of achieving the main purpose of the . In the next chapter I will first elaborate the nature of strategy and why strategic change is deemed important . Afterwards , the next chapters will elaborate each of the three strategic concepts and how they contribute to strategic change The Nature of Strategy

II .1 Strategic Positioning is no Longer the Core of Strategy

What is strategy ? This questions has been answered by so many people in so many ways that the student are having trouble justifying themselves when they mentioned the definition of strategy to their professors Strategy is different to different people and in different times . Once people stated that the core of strategy is positioning , a way of placing your business so that it will gain sustainable competitive advantage over others in its environment . Many still believe that this is true

However , new development has seemed to deny that claim . The market is changing too fast these days that positioning can no longer guarantee any business to thrive in its markets for a notable amount of time Rivals can quickly copy corporate strategy and thus , taking their stand in similar strategic positions . Strategic positioning can provide benefits for companies at best , temporary

II .2 Strategic Change and its Importance

Companies must be flexible , responsive and benchmarks actively to gain leadership in today 's business world . This premise is ironically , still lack of acknowledgement from most business people . In the condition of hyper-competition , the first rule of business today is `change or disappear . There are various external factors that contributes to organizational change , they are : computer technology , changing employee demographic , government regulation and global economic competition

There are various levels of readiness to change . A company might choose to accept or resist organizational change . The factors that lead to a positive encouragement toward change are : benefits of the change outweigh the cost , there is current dissatisfaction with current conditions , better alternatives are...